Japan's Dentsu launches second VC fund
Japanese advertising agency Dentsu Group has set up its second corporate VC fund with a corpus of JPY10 billion ($91.1 million).
Dentsu is the only confirmed LP in the vehicle, which will be co-managed by two VC units, Dentsu Ventures and Dentsu Innovation Partners, alongside affiliate Prime Partners. Dentsu’s first fund was established in 2015, also with JPY10 billion.
Like its predecessor, Dentsu Venture Fund II will invest from the seed to late stages globally. The first fund backed more than 40 companies with a preference for US start-ups looking to enter Japan. Fund II is expected to focus more on local entrepreneurs in part due to travel restrictions.
Deal targeting will remain sector agnostic, although with a greater emphasis on the company’s core interests in marketing, media, and communication. There will also be an increased effort to leverage in-house R&D resources. Historically, portfolio support has included access to marketing technology and help developing media projects with entertainment companies.
Standout portfolio companies in Japan include stock trading app operator Folio, which raised an approximately $63 million Series A round led by Goldman Sachs in 2018. Folio specializes in online financial services products that allow users to make investments as small as JPY100,000 with a thematic, sector-based approach managed by the start-up.
Dentsu Group, which traces its history back to 1901, has been formally active in corporate venture capital since at least 2000, when it set up Dentsu Digital Holdings. A string of small early funds were launched under various names, such as Dentsu Dot.com, until 2010, when the business was renamed Dentsu Innovation Partners.
Dentsu Ventures was established in 2015 by Kotaro Sasamoto, who left the parent company’s corporate strategy division to become managing director of the VC unit. He is supported by general partners Daiji Horibe, Katsuyuki Hasegawa, and Daisuke Takemori, all of whom fill senior leadership positions at Prime Partners. Sasamoto is also a partner at Prime.
More on North Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.